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A stock has a beta of 1.5 and an expected return of 18 percent. A risk-free asset currently earns 2 percent. a) What is the

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A stock has a beta of 1.5 and an expected return of 18 percent. A risk-free asset currently earns 2 percent. a) What is the expected return on a portfolio that is equally invested in the two assets? (3 marks) b) If a portfolio of the two ossets has a beta of 0.50, what are the portfolio weights? (4 marks) c) If a portfolio of the two assets has an expected return of 12 percent, what is its beta? (4 marks) d) If a portfolio of the two assets has a beta of 2.26, what are the portfolio weights? How do you interpret the weights for the two assets in this case? Explain. (4 marks)

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